Business Model

for Cloud

Personal Video

Recording

（Cloud PVR）Wang Xiaoxu (A0055839R)

Wu Bo (A0056024R)

Xu Jingru (A0133732M)

2

Agenda

Introduction

Customer Selection

Value Proposition

Scope of Activities

Value Capture

Strategic Control

Introduction

3

What is Cloud PVR?

Cloud PVRPVR

4

What is Cloud PVR?

Cloud Personal Video Recording

Any device

Any content

Any location

Any occasion

With

Stable network

Simple interface

At

Lower cost

Unlimited Space

Cloud PVRANY CONTENT

ANYWHERE

5

Problems Solutions Subscription fee for

existing Recording service

Limited disk space to

store TV series

Large size and low

portability

Poor Viewability &

Controllability

Values Added

First 20Gb free for end user

Scalable and easily

expanding storage space

High portability andcompatability with multiple

devices

All your viewing history with

high tracability

6

Market Trend & Demand

TV, Home desktop

Portable personal computer

Mobile internet, internet TV

Inter-linked personal smart devices & TV

Con

cept

of

Virt

ualiz

atio

n

Clo

ud

App

licat

ion

IaaS

, Paa

S,

Saa

SThe increasing trend of multiple smart

devices and maturity of cloud computing

technology imply a demand for moving

video storage into the cloud.

Architecture Innovation: Cloud PVR

Customer

Selection

8

Customer Selection

Customer Selection

Subscribers

1. Existing users of PVR

2. Cable TV user (not using any recording service)

3. Other potential users

Advertisers

3rd Party Video

Apps formobiledevices

9

Existing users of PVR- Upgrading to cloud PVR

Transition cost is low,

willingness to upgrade

to cloud PVR is high

Familiar with PVR user

interface

Reduce their cost of

renting the hardware

Subscribers

$8 /Month

rental for

hardware

Free

within

20G

10

Cable TV user (Non PVR user)

Cloud PVR is a new

attractive function for

them

No cost increase

Setup is smaller than PVR

More resources of video

contents at anytime

Subscribers

45

55

All Cable TV users

Cable TV

Users like to

use Cloud

PVR

11

Other potential users

Online video viewers

transfer to cloud PVR

More contents(Sports)

More stable（TV Cable)

Readily organized

contents

Subscribers

12

Advertisers

Based on data

analysis of Subscribers

Based on pre-

processing of content

Better wayto reach

specificallytargetedmarket

About Fashion

ClothesAbout

Makeup

About Women’s healthy food

Nearest

LocationInformation

13

3rd party Video Apps formobile devices

Rent server memory space to

them

Sell content access right to

them

14

Cloud PVR Google TV Internet Video

Player

Customers who

need video

service to be

Simple

Stable

High definitionReadily organized

Reliable contents

Young gamers who

need video

service to be

Cheap, with

GamesThey are OK with

Quality & Speed

not guaranteed

Long time spent on searching

&irrelevant Ads

Young, know what

they would like to

watch

Cheap

They are OK with

Quality & Speed not

guaranteed

Long time spent on

searching

&irrelevant Ads

Compare potentialcustomers’ requirements

Value

Proposition

16

PVRCloud PVR

Value Proposition

17

Flexibility

Connected mobiledevices to enrichwatchingexperience

Large storage space

Parallel recording

PVR PVR PVR PVR

Value Proposition

18

Back-up of personal content

Supported by robust infrastructure

Trust-worthy

Value Proposition

19

Lower set-top-box (STB) costs

$8/Month toFree

Easier Inventory

Management & Logistics

Centralized Storage & Network

Maintenance

Value Proposition

20

More

targeted &

personalized advertising

Value Proposition

21

Value Proposition

We rent storage incloud with low price

We provide accessright to videos

We manage andmaintain for them

22

Video Delivery Value Chain

Content Creation

Content Packaging

Content Distribution

User Interface

End User

Independent

Producers

Service

Provider

Broadcast TV

Stations

TV Subscribers

Producers,

User Uploads

Barely

processed

Internet TV, PC,

Tablet, Phone

Subscribers,

Downloaders

Independent

Producers

Customized

pre-processing

Cloud Connected

Smart Device

Consumers

User upload via

3rd party apps

3rd party’s own

control

Cloud TV, PC,

Tablet, Phone

Subscribers,

Downloaders

Traditional

New Alternatives (eg. Internet Video Players, Google TV)

Cloud PVR

23

Value Proposition

0

1

2

3

4

5

6

Google TV

Internet video

player

Cloud PVR

Scope of

ActivityPartly a cost decision,partly

a strategic decision.

25

Scope of activity

Our company

cPVR

Viewer/

SubscriberAdvertiser

Content

Provider

3rd Party

Video App

Extended cPVR

suppliers

26

Scope of activity

Data analysisContent preprocessing

cPVR

SupplierViewer/

SubscriberAdvertiser

Content

Provider

3rd Party

Video App

Extended cPVR

Live TV & Video

Viewer Data

Infrastructure& ProfessionalService

Access right to content

Value

Capture

29

Sources of Income

Cross-Subsidization by advertisers

No subscription fee for end user

Advertiser pay for customized service

More sources of money

3rd Party Apps

Money Inflows

$8

30

Current Value Networks

cPVR

Service

Provider

Viewer/

SubscriberAdvertiser

Content

Provider

Social Network

Data Analysis, Content

Processing

Service Provider

Viewer Data & preference

Bid for Slot

Pay Per Content

Live TV & Video

Video Content

Video Recording

Subscription fee

$

$ $

User-end

Hard DiskReplay

31

New Value Networks

cPVR

Service

Provider

Viewer/

SubscriberAdvertiser

Content

Provider

3rd Party

Video App

Social Network

Data Analysis, Content

Processing

Service Provider

Extended cPVR

Viewer Data & preference

Bid for Slot &Pay Per View

Pay Per View(Partially subsidized by Viewer data)

Live TV & Video

Viewer Data

Recommendation

Customized Content

Video Recording

Pay By Usage

Content Uploading & Retrieving

Pay Per View(cross subsidized

by advertiser)

$

$

$

$

Customized Ad

32

Partners within Value Network

cPVR Service Provider / ISP

Advertising Bid & PPV

Subscription fee for no Ad

video

Metered Cloud Service to 3rd

Party App

Content Provider

Embedded Advertising

3rd Party App Developer

Advertising

Premium Content Sales

Etc. (within 3rd

party’s own control)

Advertisers

Sale of Products

How we enable our partners to make money?

$

Strategic

Control

34

Nature of Technology

Complexity

• Hard to achieve

Barrier Entrance

• Massiveinfrastructure

Network Effects

• Make use of social network

Economies of scale

• Memory Space

• Content pre-process

• Data analysis

First mover

• Competitive advantage

Strategic Control

Nature of Technology

Nature of Technology

35

Legal Mechanisms of Protection

Legal mechanisms of protection

Existing Cable/Fiber

infrastructure and

bandwidth - scarce

resources

Strategic Control

36

Control of industry architecture and

complementary assets

Company capability

More bandwidth for our viewers

Strong appropriability of infrastructures

Complement cloud PVR service with other telecom services

Long tail benefit

Small adverting companies

Content pre-process & data analysis

Strategic Control

37

The End